IMPORTANT: Investment involves risks. Investment value may rise or fall. Past performance information presented is not indicative of future performance. Investors should refer to the Prospectus and the Product Key Facts Statement for further details, including product features and risk factors. Investors should not base on this material alone to make investment decisions.

CSOP NASDAQ-100 Index Daily (2x) Leveraged Product (the “Product”) is a sub-fund of CSOP Leveraged and Inverse Series II, an umbrella unit trust established under Hong Kong law. Units of the Product (the “Units”) are traded in HKD on The Stock Exchange of Hong Kong Limited (the “SEHK”) like stocks. It is a futures-based product which invests directly in the nearest quarter E-Mini NASDAQ 100 Futures (“E-mini NASDAQ 100 Futures”) which are traded on the Chicago Mercantile Exchange (“CME”) so as to give the Product twice (2x) the Daily performance of the Index. The E-mini NASDAQ 100 Futures offer liquid benchmark contracts to manage exposure to the constituents of the Index. It is denominated in USD. Creations and redemptions are in USD only.

The Product is a derivative product and is not suitable for all investors. There is no guarantee of the repayment of principal. Therefore your investment in the Product may suffer substantial or total losses.

The Product will utilise leverage to achieve a Daily return equivalent to twice (2x) the return of the Index. Both gains and losses will be magnified. The risk of loss resulting from an investment in the Product in certain circumstances including a bear market will be substantially more than a fund that does not employ leverage.

The Product is not intended for holding longer than one day as the performance of the Product over a period longer than one day will very likely differ in amount and possibly direction from the leveraged performance of the Index over that same period (e.g. the loss may be more than twice the fall in the Index). The effect of compounding becomes more pronounced on the Product’s performance as the Index experiences volatility. With higher Index volatility, the deviation of the Product’s performance from the leveraged performance of the Index will increase, and the performance of the Product will generally be adversely affected. As a result of Daily rebalancing, the Index’s volatility and the effects of compounding of each day’s return over time, it is even possible that the Product will lose money over time while the Index’s performance increases or is flat.

There is no assurance that the Product can rebalance its portfolio on a Daily basis to achieve its investment objective. Market disruption, regulatory restrictions or extreme market volatility may adversely affect the Product’s ability to rebalance its portfolio.

The rebalancing activities of the Product typically take place near the end of trading of the underlying futures market to minimise tracking difference. As a result, the Product may be more exposed to the market conditions during a shorter interval and may be more subject to liquidity risk.

The Product is normally rebalanced at or around the close of the E-mini NASDAQ 100 Futures on each Business Day. As such, return for investors that invest for period less than a full trading day will generally be greater than or less than two times (2x) the leveraged investment exposure to the Index, depending upon the movement of the Index from the end of one trading day until the time of purchase.

Daily rebalancing of Product’s holdings causes a higher level of portfolio transactions than compared to the conventional exchange traded funds. High levels of transactions increase brokerage and other transaction costs.

Investment in futures contracts involves specific risks such as high volatility, leverage, rollover and margin risks. There may be imperfect correlation between the value of the underlying reference assets and the futures contracts, which may prevent the Product from achieving its investment objective. A “roll” occurs when an existing E-mini NASDAQ 100 Future is about to expire and is replaced with another E-mini NASDAQ 100 Future with a later expiration date. The value of the Product’s portfolio (and so the NAV per Unit) may be adversely affected by the cost of rolling positions forward as the E-mini NASDAQ 100 Futures approach expiry. This effect may be more pronounced in products with higher leverage ratio. An extremely high degree of leverage is typical of a futures trading account. As a result, a relatively small price movement in an E-mini NASDAQ 100 Future may result in a proportionally high impact and substantial losses to the Product, having a material adverse effect on the NAV. A futures transaction may result in significant losses in excess of the amount invested.

The daily price limit for the NASDAQ (which is triggered when the price of the S&P 500 Index drops 20% in a day) and the daily price limit for the E-mini NASDAQ 100 Futures (which may be triggered by 7%, 13%, 20% declines or 5% up and down changes of the price of the E-mini NASDAQ 100 Futures, depending on the time of the day) are different, as they are triggered at different price changes. As such, should the Index’s daily price movement be greater than the price limit of the E-mini NASDAQ 100 Futures, the Product may not be able to achieve its investment objective as the E-mini NASDAQ 100 Futures are unable to deliver a return beyond their price limit.

The Product is subject to concentration risks as a result of tracking the leveraged performance of companies from the technology sector and its concentration in the US market which may be more volatile than other markets. The value of the Product may be more volatile than that of a broadly-based fund. Companies in the technology sector are often smaller, and are characterised by relatively higher volatility in price performance when compared to other economic sectors. Companies in the technology sector also face intense competition which may have an adverse effect on profit margins. Investment in NASDAQ constituents may therefore be more volatile. The price volatility of constituents of the Index may be greater than the price volatility constituents of more broad-based indices.

Payment of distributions out of capital or effectively out of capital amounts to a return or withdrawal of part of an investor’s original investment or from any capital gains attributable to that original investment and may result in an immediate reduction in the NAV per Unit.

The Product is not “actively managed” and the Manager will not adopt any temporary defensive position when the Index moves in an unfavourable direction. In such circumstances, Units of the Product will also decrease in value.

The trading price of the Units on the SEHK is driven by market factors such as the demand and supply of the Units. Units may trade at a substantial premium or discount to the NAV. As investors will pay certain charges (e.g. trading fees and brokerage fees) to buy or sell Units on the SEHK, investors may pay more than the NAV per Unit when buying Units on the SEHK, and may receive less than the NAV per Unit when selling Units on the SEHK.

As the CME may be open when Units in the Product are not priced, the value of the E-mini NASDAQ 100 Futures in the Product’s portfolio, or the value of constituents in the Index to which such futures contracts are linked, may change on days when investors will not be able to purchase or sell the Product’s Units. Differences in trading hours between the CME and the SEHK may increase the level of premium/discount of the Unit price to its NAV. The NASDAQ and the CME have different trading hours. Trading of the Index constituents closes earlier than trading of the E-mini NASDAQ 100 Futures, so there may continue to be price movements for the E-mini NASDAQ 100 Futures when Index constituents are not trading. There may be imperfect correlation between the value of the Index constituents and the E-mini NASDAQ 100 Futures, which may prevent the Product from achieving its investment objective.

Although the Manager will use its best endeavours to put in place arrangements so that at least one market maker will maintain a market for the Units and gives not less than three months’ notice prior to termination of the market making arrangement, liquidity in the market for the Units may be adversely affected if there is only one market maker for the Units. There is also no guarantee that any market making activity will be effective.

The Product may be subject to tracking error risk, which is the risk that its performance may not track that of the Daily leveraged performance of the Index exactly. This tracking error may result from the investment strategy used, high portfolio turnover, liquidity of the market and fees and expenses and the correlation between the performance of the Product and the two times (2x) Daily performance of the Index may be reduced. The Manager will monitor and seek to manage such risk in minimising tracking error. There can be no assurance of exact or identical replication of the leveraged performance of the Index at any time, including on an intra-day basis.

Prices of the Product may be more volatile than conventional ETFs because of the daily rebalancing activities and the leverage effect.

The Product may be terminated early under certain circumstances, for example, where there is no market maker, the Index is no longer available for benchmarking or if the size of the Product falls below USD10 million. Investors may not be able to recover their investments and suffer a loss when the Product is terminated.

Investors should note that all Units will receive distributions in the Base Currency (USD) only. In the event that the relevant Unitholder has no USD account, the Unitholder may have to bear the fees and charges associated with the conversion of such distribution from USD to HKD or any other currency. The Unitholder may also have to bear bank or financial institution fees and charges associated with the handling of the distribution payment. Unitholders are advised to check with their brokers regarding arrangements for distributions.

Please note that the above listed investment risks are not exhaustive and investors should read the Prospectus in detail before making any investment decision.

Investment Objective and Strategy

The investment objective of the Product is to provide investment results that, before fees and expenses, closely correspond to twice (2x) the Daily performance of the Index. The Product does not seek to achieve its stated investment objective over a period of time greater than one day.

To achieve the investment objective of the Product, the Manager will adopt a futures-based replication strategy through investing directly in the nearest quarter E-mini NASDAQ 100 Futures subject to the rolling strategy discussed in prospectus to obtain the required exposure to the Index.

In entering into the E-mini NASDAQ 100 Futures, the Manager anticipates that no more than 40% of the Net Asset Value of the Product (the “NAV”) from time to time will be used as margin to acquire the E-mini NASDAQ 100 Futures. Under exceptional circumstances (e.g. increased margin requirement by the exchange in extreme market turbulence), the margin requirement may increase substantially. Not less than 60% of the NAV (this percentage may be reduced proportionately under exceptional circumstances where there is a higher margin requirement, as described above) will be invested in cash (USD) and other USD denominated investment products, such as deposits with banks in Hong Kong and USD denominated investment-grade bonds and SFC authorized money market funds in accordance with the requirements of the Code.

Intra-day Estimated NAV1 & Market Price2

Market Information 3, 4

Date

Last

Change

Change (%)

NAV per Unit in USD (official)

-

-

-

-

NAV per Unit in HKD (for reference only)

-

-

-

-

Closing Price for Trading unit in HKD

-

-

-

-

Product Information

Manager

CSOP Asset Management Limited

Base Currency

USD

Domicile

Hong Kong

Asset Class

Futures

Total NAV (USD)

-

Outstanding Units

-

Management Fee^

1.50%

Ongoing Charges over a year # (annual average daily ongoing charges*)

1.99% (0.008%)

Dividend Policy

Annually in December subject to the Manager’s discretion

^ Include trustee fee, custodian fee and administration fee. Please note that the management fee may be increased up to a permitted maximum amount by providing one month’s prior notice to Unitholders. Please refer to the section headed “Fees and Expenses” in the Prospectus for further details of the fees and charges payable and the permitted maximum of such fee allowed, as well as other ongoing expenses that may be borne by the Product.

# The ongoing charges figure is indicative only as the Product is newly set up. It represents the sum of the estimated ongoing expenses chargeable to the Product expressed as a percentage of the Product's NAV. The actual figure may be different from this estimated figure and it may vary from year to year.

* This is indicative only because the Product is newly established. The annual average daily ongoing charges figure is equal to the ongoing charges figure over the first year of listing divided by the anticipated number of dealing days during that year. The actual figure may be different from the estimate figure and may vary from year to year.

Appropriation

Leverage

Two times (2x) daily performance of the underlying index

Actively Managed

No

Swap Based

No

Futures Based

Yes

Securities Lending

No

Underlying Index Information

Underlying Index

NASDAQ-100 Index

Index Provider

NASDAQ, Inc.

Currency

US Dollar (USD)

Index Launch Date

31 January 1985

Benchmark Level Type

Price return

Bloomberg Ticker

NDX

Reuters Code

.NDX

Trading Information

Exchange

Hong Kong Stock Exchange – Main Board

Date of Listing / Dealing

15 May 2020

Primary Exchange Time Zone

GMT+8

Exchange Ticker

7266

Bloomberg Ticker

7266 HK

ISIN

HK0000604659

Trading Board Lot

100 Units

Trading Currency

HKD

Participating Dealers5

Haitong International Securities Company Limited

Market Makers6

HKD

Flow Traders Hong Kong Limited

The near real-time indicative NAV per Unit in HKD and the last NAV per Unit in HKD are indicative and for reference purposes only. The near real-time indicative NAV per Unit in HKD uses a real-time HKD:USD foreign exchange rate – it is calculated using the near real-time indicative NAV per Unit in USD multiplied by a real-time HKD:USD foreign exchange rate provided by ICE Data Indices when the SEHK is opened for trading.

The last NAV per Unit in HKD is calculated using the last NAV per Unit in USD multiplied by an assumed foreign exchange rate using the HKD:USD exchange rate quoted by Reuters at 3:00 p.m. (Hong Kong time) as of the same Dealing Day. The last NAV per Unit in USD and HKD will be updated on days when the SEHK is open for trading, but will not be updated when the CME is closed. Since the indicative NAV per Unit in USD will not be updated when the CME is closed, any change in the indicative NAV per Unit in HKD (if any) during such period is solely due to the change in the foreign exchange rate.

Additional Participating Dealer(s) will be appointed from time to time.

# Cumulative performance is calculated since the inception date on 15 May 2020.

All dollar amounts are in USD and all dates are in GMT+8 Time, unless otherwise specified

Performance is calculated on NAV to NAV basis in USD with dividend reinvested, taking into account ongoing charges and excluding your trading costs on SEHK.

CSOP NASDAQ-100 Index Daily (2x) Leveraged Product

NASDAQ-100 Index

Leveraged (2x) of NASDAQ-100 Index

Where no past performance is shown there was insufficient data available in that year to provide performance.

# Calculated since the inception date on 15 May 2020.

All dollar amounts are in USD and all dates are in GMT+8 Time, unless otherwise specified

Performance is calculated on NAV to NAV basis in USD with dividend reinvested, taking into account ongoing charges and excluding your trading costs on SEHK.

Performance Simulator

Investors should understand that the Leveraged Product aims to provide returns closely correspond to twice (2x) the Daily performance of the Index. It has to rebalance its position on a daily basis in order to achieve its investment objective. As a result of rebalancing, it may not track the multiple return of the Index when it is held for less than a full trading day or overnight.

Below is a performance simulator to allow investors to simulate the performance of the Leveraged Product during the selected period based on historical data. The investor is assumed to hold the Leveraged Product for the entire simulation period. The performance of the Leveraged Product is calculated based on it's NAV. The performance of the Leveraged Product may not reflect the returns that the investor would be able to obtain as it does not capture the premium/ discount of the Leveraged Product, or the trading costs.

Start Date

End Date

Simulation Results

CSOP NASDAQ-100 Index Daily (2x) Leveraged Product

-

NASDAQ-100 Index

-

Leveraged (2x) of NASDAQ-100 Index

-

Performance Chart

Tracking Difference/ Error

Daily Tracking Difference (Daily TD)

Daily TD is the difference between the daily return of an Leveraged Product and the 2x daily performance of the underlying index.

Tracking Error (TE)

Tracking error measures how consistently a Leveraged Product delivers the 2x daily performance of the underlying index. It is the volatility (measured by standard deviation) of that daily return difference.

Important information about Dividend out of capital / effectively out of capital

The Manager will have the discretion to determine if and to what extent distributions (whether directly or effectively) will be paid out of capital of the Product.

The Manager may, at its discretion, pay distributions out of capital. The Manager may also, at its discretion, pay distributions out of gross income while all or part of the fees and expenses of the Product are charged to/paid out of the capital of the Product, resulting in an increase in distributable income for the payment of distributions by the Product and therefore, the Product may effectively pay distributions out of capital.

Payments of distributions out of capital or effectively out of capital amounts to a return or withdrawal of part of an investor’s original investment or from any capital gains attributable to that original investment. Any distributions involving payment out of or effectively out of the Product’s capital may result in an immediate reduction in the Net Asset Value per Unit and will reduce any capital appreciation for the Unitholders.

Distribution History

Ex-Date

Record Date

Payable Date

Dividend Per Share

Dividend Paid Out of Net Distributable Income* for the month

Dividend Paid Out of Capital

*“Net distributable income” means the net investment income (i.e. dividend income and interest income net of fees and expenses) attributable to the relevant share class and may also include net realised gains (if any) based on unaudited management accounts. However, “net distributable income” does not include net unrealised gains.

The data in “dividend paid out of net distributable income” and “dividend paid of out of capital” are just for reference only. Please kindly refer to the official dividends information in the dividend per share column.

Warning: Please note that a positive distribution yield does not imply a positive return. Investors should not make any investment decision solely based on information contained in the table above. There is no guarantee of distribution. Investors should read the relevant offering document (including the key facts statement) of the fund for further details including the risk factors.

All dollar amounts are in USD. All dates are in GMT+8 Time.

Index Provider Disclaimer

The CSOP NASDAQ-100 Index Daily (2x) Leveraged Product (the “Product”) is not sponsored, endorsed, sold or promoted by NASDAQ, Inc., or its affiliates (Nasdaq, with its affiliates, is referred to as “NASDAQ”). NASDAQ has not passed on the legality or suitability of, or the accuracy or adequacy of descriptions and disclosures relating to, the Product. NASDAQ makes no representation or warranty, express or implied, to the owners of the Product or any member of the public regarding the advisability of investing in securities generally or in the Product particularly or the ability of the Index to track general stock market performance. NASDAQ’s only relationship to the Product and CSOP Asset Management Limited (“CSOP”) is in the licensing of certain trademarks and trade names of NASDAQ and the use of the Index which is determined, composed and calculated by NASDAQ without regard to CSOP or the Product. NASDAQ has no obligation to take the needs of CSOP or its affiliates or the owners of the Product into consideration in determining, composing or calculating the Index. NASDAQ is not responsible for and has not participated in the determination of the timing of, prices at, or quantities of the Product to be issued or in the determination or calculation of the equation by which the Product is to be converted into cash. NASDAQ has no liability in connection with the administration, marketing or trading of the Product.

NASDAQ does not guarantee the accuracy and/or uninterrupted calculation of the Index or any data included therein. NASDAQ makes no warranty, express or implied, as to results to be obtained by the trust on behalf of the Product as licensee, owners of the Product, or any other person or entity from the use of the subject Index or any data included therein. NASDAQ makes no express or implied warranties and hereby expressly disclaims all warranties of merchantability or fitness for a particular purpose or use with respect to the Index or any data included therein. without limiting any of the foregoing, in no event shall NASDAQ have any liability for any lost profits or special, incidental, punitive, indirect, or consequential damages, even if notified of the possibility of such damages.

Disclaimer

This website is owned and managed by CSOP Asset Management Limited (“CSOP”). CSOP reserves the right to change, modify, add or delete, any content and the terms & conditions of use of this website without notice. Users are advised to periodically review the contents of this website to be familiar with any modifications.

The performance figures contained on this website are for informational purposes only. Past performance is not indicative of future performance. Investment involves risks and the Product's NAV per unit may rise as well as fall. Persons interested in investing in the Product should read the relevant fund offering documents (including the full text of the risk factors stated therein) in detail before making any investment decision.

This website is prepared by CSOP and has not been reviewed by the Securities and Futures Commission.

工作機會暫時只提供於英語版本, 請前往英語頁面繼續操作

Privacy Statement

This is the website of CSOP Asset Management Limited ("CSOP"). We understand that our customers and website visitors are concerned about the privacy of information. We have established policies and procedures concerning the collection, use and security of your information that will help protect your privacy. This policy statement provides information on the obligations and policies of CSOP under the Personal Data (Privacy) Ordinance (the "Ordinance").

OUR CORPORATE POLICY

CSOP recognize the importance of personal data to our business and the importance of respecting the privacy rights of our clients. Therefore, we are committed to ensuring compliance with the requirements of the Ordinance. Each employee of CSOP must abide by our commitment to privacy in the handling of personal information. To further enhance confidentiality and security of all personal data, only authorized staff will be allowed to have access to the personal information collected. It is restricted to those persons who have a business need to access personal information in order to perform their job duties.

The purpose of this Statement is to establish the policies and practices of CSOP's commitment to protect the privacy of personal data and to inform you about our responsibilities and your rights under the Ordinance.

Types of Personal Data Held

There are two broad categories of personal data held by us. They are personal data relating to clients and employees of CSOP.

Personal data held by us regarding clients may include the following:-

name and address, occupation, contact details, date of birth, their identity card or passport numbers;

current employer, nature of position, relevant income of clients;

details of financial status of clients; and

information obtained by us in the ordinary course of the business relationship such as, investment options, account values and balances etc.

Personal data relating to employment held by us may include the following:-

name and address, contact details, date of birth and nationality of employees and their spouses and their identity card or passport numbers and place and date of issue thereof;

additional information compiled about employees which may include records of remuneration and benefits paid to the employees, records of job postings, transfer and training, records of medical checks, sick leave and other medical claims and performance appraisal reports of the employees; and

relevant personal data pertaining to former employees may be required by us to fulfill its obligations to the former employees and its legal obligations under certain ordinances.

Main Purposes of keeping Personal Data

The purposes for which personal data relating to clients may be used are as follows:-

facilitate the daily operations of the services provided to the clients;

marketing investment products or services by CSOP;

maintaining statistical data and providing a database for product and market research;

marketing financial and/or investment products or services by any company/companies other than CSOP, subject to client's express prior written consent;

compliance with applicable laws and regulations; and

any other purposes relating or incidental thereto.

The purposes for which personal data relating to employees may be used are as follows:-

determining and reviewing salaries, bonuses and other benefits;

consideration for promotion, training, secondment or transfer;

roviding employee references;

registering employees licensees with statutory authorities/institutions for purposes directly related or associated to the employment; and

any other purposes relating or incidental thereto.

Transfer of Personal Data

Personal data held by CSOP relating to clients will be kept confidential but may be transferred to the following parties (whether within or outside the Hong Kong Special Administrative Region) for any of the purposes stated above:-

any agent, contractor, third party service provider or any member company of CSOP which provides administrative, telecommunications, computer, marketing, professional or other services to CSOP in connection with its business operations;

any person to whom CSOP is under an obligation to make disclosure under the requirements of any law binding on CSOP or any of its member companies or under and for the purposes of any guidelines issued by regulatory or other authorities with which CSOP or its member companies are expected to comply;

any actual or proposed assignee of CSOP or participant or sub-participant or transferee of CSOP's rights in respect of the client; and

any persons or bodies corporate under a duty of confidentiality to CSOP.

Accuracy of Personal Data

CSOP strive at all times to ensure accuracy of all personal data collected and processed by us. In order to assist us to deliver on this pledge, please inform us immediately in the event that your personal information has been changed or you discovered that your personal information held by us is incorrect.

Your Rights

It is not a statutory requirement for you to provide personal data to us. However, we will not be able to provide you with the services and products you may require unless you provide us with the necessary personal data or information.

You have a right (i) to be informed whether we hold any of your personal data; (ii) to be supplied with a copy of your personal data we hold; and (iii) to request correction of your personal data we hold. If you wish to access to and/or to correct any of your personal data held by us, please send your written request to the address set out below. We may, subject to the Ordinance, impose a reasonable fee for complying with a data access request.

If you do not wish your personal data to be used for direct marketing purposes, you may notify us in writing to the following address:-

Upon receipt of such notice, we shall, without charge to you, cease using your personal data for direct marketing purposes.

Disclaimer

CSOP Asset Management Limited ("CSOP") is a regulated institution in Hong Kong by the Securities and Futures Commission (“SFC”). This website contains information about CSOP and the services and products offered by CSOP. The information provided on the CSOP website is not intended for distribution to, or use by, any person or entity in any jurisdiction or country that would subject CSOP or its affiliates to any registration requirement within such jurisdiction or country. Non-Hong Kong investors are responsible for observing all applicable laws and regulations of their relevant jurisdictions before proceeding to access the information contained herein. By proceeding, you are representing that you have understood and accepted the restrictions set out in this section.

The website is prepared by CSOP and has not been reviewed by the SFC. You are advised to exercise caution and if you are in any doubt about any of the contents of the website, you should obtain independent financial and professional advice. Private Investors are advised to consult with their financial advisors, banks, or other professional advisors. Nothing herein should be construed as investment advice nor as comment on the suitability of any investment or investment service. Prospective investors should take advice from their own professional advisors before making any investment decision.

The information contained in this website is provided for reference only and does not constitute any investment advice. Past performance is not an indicative of future performance. Investment involves risk and investors may not get back the amount originally invested. Please read the relevant offering document carefully, in particular fund features and the risks involved in investing in the fund.

Nothing on this website constitutes a solicitation, invitation, recommendation or offer to purchase a product offered by CSOP or any CSOP funds or as the basis for any investment decision.

This site may include forward-looking statements which are based on CSOP's current opinions, expectations and projections. CSOP undertake no obligation to update or revise any forward-looking statements. Actual results could differ materially from those anticipated in the forward-looking statements.

If you have accessed this site using a link from another site, CSOP do not accept any liability or responsibility for the accuracy of information contained within the sites of other providers who have links to any pages of this site.

CSOP do not accept responsibility for any interference or damage to your own computer system, the records stored therein or those of any other person, which arises in connection with your use of this website or any linked website. A Cookies is utilized on this website. It allows your browser to check whether you have read and agreed to these terms. The Cookies does not contain any personally identifiable information. Unfortunately, if your browser is set up to reject Cookies you will not be able to see the content of this website. All copyrights reserved and its contents including all information, graphics, code, text and design in this website are owned by CSOP and should not be reproduced or distributed without its permission. These terms are governed exclusively by the laws of Hong Kong and constitute the entire agreement between you and CSOP in relation to the use of this website.

The information is current as at the date of publication but is subject to change without notice.